Euronext

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This article is about the stock exchange. For its parent company, see IntercontinentalExchange.
Euronext N.V.

Brussels Euronext Exchange
Type Stock exchange
Location Amsterdam, Netherlands
FoundedSeptember 22, 2000[1][2][3][4]
OwnerIntercontinentalExchange
Key peopleDominique Cerutti [5][6][7]
(CEO Euronext N.V.)

Cees Vermaas [8][9]
(CEO Euronext Amsterdam)
Vincent Van Dessel[10]
(CEO Euronext Brussels)
Luís Laginha de Sousa[11]
(CEO Euronext Lisbon)

Antony Attia[7][12]
(CEO Euronext Paris)
CurrencyEuro
No. of listings1,176
MarketCapUS$ 2.8 trillion (Dec 2012)[13]
VolumeUS$ 1.9 trillion (Dec 2009)
IndexesAEX
BEL20
CAC40
PSI20
Euronext 100
fr:Next 150 (French)
WebsiteEuronext.com

Euronext N.V. is a European electronic stock exchange based in Amsterdam, Netherlands,[14] and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services. As of December 2012 Euronext was the 5th largest stock-exchange group in terms of companies listed.[13] Euronext merged with NYSE Group, Inc. on April 4, 2007 to form NYSE Euronext (Euronext: NYX), the "first global stock exchange". On November 13, 2013 IntercontinentalExchange (NYSE: ICE), completed acquisition of NYSE Euronext.[5][15]

History

Euronext was formed on 22 September 2000 following a merger of the Amsterdam Stock Exchange, Brussels Stock Exchange, and Paris Bourse, in order to take advantage of the harmonization of the European Union financial markets.[1][2][3][4] In December 2001, Euronext acquired the shares of the London International Financial Futures and Options Exchange (LIFFE), which continues to operate under its own governance. Beginning in early 2003, all derivatives products traded on its affiliated exchanges trade on LIFFECONNECT, LIFFE's electronic trading platform,[3][16] which was later replaced with Universal Trading Platform (UTP).[17][18] In 2002 the group merged with the Portuguese stock exchange Bolsa de Valores de Lisboa e Porto (BVLP), renamed Euronext Lisbon.[3]

Acquisition of Liffe

Euronext.liffe was formed in January 2002[16] from the takeover of the London International Financial Futures and Options Exchange (LIFFE) by Euronext.[19] The derivatives activities of the other constituent exchanges of Euronext (Amsterdam, Brussels, Lisbon and Paris), were merged into Euronext.liffe. Until migration to UTP, trading was done electronically through the LIFFE CONNECT platform.[17] In 2011 migration of all derivative products to UTP was completed.[18] Euronext.liffe offers a wide range of futures and option products on short-term interest rates, bonds, swaps, equities and commodities.

In addition to this, it sells its technology to third parties. Since April 2003, the trading on Tokyo Financial Exchange (formerly Tokyo International Financial Futures Exchange[TIFFE]) is run on LIFFE CONNECT.[20] From January 2004 until its merger with the Chicago Mercantile Exchange in 2008, the Chicago Board of Trade provided electronic trading via e-cbot, which was powered by LIFFE CONNECT.[21][22] As a result, the Kansas City Board of Trade[23] and the Minneapolis Grain Exchange[24] used LIFFE CONNECT for their overnight trading.

Alternext

Alternext was formed in 2005 by Euronext to help small and mid-class companies in the Eurozone seek financing. Since the merger of Euronext and NYSE in 2006, completed in 2007, this market is now a division of NYSE Euronext, named NYSE Alternext.[25][26]

Merger with NYSE

Due to apparent moves by NASDAQ to acquire the London Stock Exchange,[27] NYSE Group, owner of the New York Stock Exchange, offered €8 billion (US$10.2b) in cash and shares for Euronext on 22 May 2006, outbidding a rival offer for the European Stock exchange operator from Deutsche Börse, the German stock market.[28] Contrary to statements that it would not raise its bid, on 23 May 2006, Deutsche Börse unveiled a merger bid for Euronext, valuing the pan-European exchange at €8.6 billion (US$11b), €600 million over NYSE Group's initial bid.[29] Despite this, NYSE Group and Euronext penned a merger agreement, subject to shareholder vote and regulatory approval. The initial regulatory response by SEC chief Christopher Cox (who was coordinating heavily with European counterparts) was positive, with an expected approval by the end of 2007.[30] The new firm, tentatively dubbed NYSE Euronext, would be headquartered in New York City, with European operations and its trading platform run out of Paris. Then-NYSE CEO John Thain, who was to head NYSE Euronext, intended to use the combination to form the world's first global stock market, with continuous trading of stocks and derivatives over a 21-hour time span. In addition, the two exchanges hoped to add Borsa Italiana (the Milan stock exchange) into the grouping.

Deutsche Börse dropped out of the bidding for Euronext on 15 November 2006, removing the last major hurdle for the NYSE Euronext transaction. A run-up of NYSE Group's stock price in late 2006 made the offering far more attractive to Euronext's shareholders.[31] On 19 December 2006, Euronext shareholders approved the transaction with 98.2% of the vote. Only 1.8% voted in favour of the Deutsche Börse offer. fr:Jean-François Théodore, the Chief Executive Officer of Euronext, stated that they expected the transaction to close within three or four months.[32] Some of the regulatory agencies with jurisdiction over the merger had already given approval. NYSE Group shareholders gave their approval on 20 December 2006.[33] The merger was completed on 4 April 2007, forming NYSE Euronext.

Attempted merger with Deutsche Börse

In 2008 and 2009 Deutsche Börse made two unsuccessful attempts to merge with NYSE Euronext. Both attempts did not enter into advanced steps of merger.[34][35]

In 2011, Deutsche Börse and NYSE Euronext confirmed that they were in advanced merger talks. Such a merger would create the largest exchange in history.[36] The deal was approved by shareholders of NYSE Euronext on July 7, 2011,[30] and Deutsche Börse on July 15, 2011[37] and won the antitrust approved by the US regulators on On December 22, 2011.[38] On February 1, 2012, the deal was blocked by European Commission on the grounds that the new company would have resulted in a quasi-monopoly in the area of European financial derivatives traded globally on exchanges.[39][40]

Acquisition by Intercontinental Exchange

In December 2012 Intercontinental Exchange announced plans to acquire NYSE Euronext, owner of Euronext, in an $8.2 billion takeover.[41] The deal was approved by the shareholders of NYSE Euronext and Intercontinental Exchange on June 3, 2013.[42][43][44] The European Commission approved the acquisition on 24 June 2013[45] and on Aug. 15, 2013 the US regulator, SEC, granted approval of the acquisition.[46][47][48] European regulators and ministries of Finance of the participating countries approved the deal and on November 13, 2013 the acquisition was completed.[5][15] ICE intends to pursue an initial public offering of Euronext in 2014.[5]

Structure and indices

Euronext comprises cash and derivatives markets, which, as of December 2013, cover the following operational markets and segments.[49]

Market / Segment Name Cash / Derivatives Country City MIC Code Comments
Euronext Amsterdam Cash The Netherlands Amsterdam XAMS
Alternext Amsterdam Cash The Netherlands Amsterdam ALXA
Traded But Not Listed Amsterdam Cash The Netherlands Amsterdam TNLA
Euronext Com, Commodities Futures And Options Derivatives The Netherlands Amsterdam XEUC
Euronext EQF, Equities And Indices Derivatives Derivatives The Netherlands Amsterdam XEUE
Euronext IRF, Interest Rate Future And Options Derivatives The Netherlands Amsterdam XEUI
NYSE Arca Europe Cash The Netherlands Amsterdam XHFT Pan-European MTF for High-frequency trading (HFT)
Euronext Brussels Cash Belgium Brussels XBRU
Alternext Brussels Cash Belgium Brussels ALXB
Easy Next Cash Belgium Brussels ENXB MTF for Warrants and Certificates
Marche Libre Brussels Cash Belgium Brussels MLXB
Trading Facility Brussels Cash Belgium Brussels TNLB
Ventes Publiques Brussels Cash Belgium Brussels VPXB
Euronext Brussels - Derivatives Derivatives Belgium Brussels XBRD
Euronext Lisbon Cash Portugal Lisbon XLIS
Alternext Lisbon Cash Portugal Lisbon ALXL Alternext is the name of a market (MTF) organised in Portugal by Euronext Lisbon, Sociedade Gestora De Mercados Regulamentados, S.A.
Easynext Lisbon Cash Portugal Lisbon ENXL
Mercado De Futuros E Opções Derivatives Portugal Lisbon MFOX
Market Without Quotations Lisbon Derivatives Portugal Lisbon WQXL
Euronext London Cash United Kingdom London XLDN A UK regulated market aimed at international issuers complementary to the existing euronext Cash markets
Liffe Derivatives United Kingdom London XLIF
Euronext Paris Cash France Paris XPAR
Alternext Paris Cash France Paris ALXP
NYSE Bondmatch Cash France Paris MTCH Financial, corporate and covered bonds trading platform for professional investors.
Euronext Paris Matif Derivatives France Paris XMAT
Marche Libre Paris Cash France Paris XMLI
Euronext Paris Monep Derivatives France Paris XMON

Cash markets

Euronext combines four national markets in Europe, trading stocks of major companies of each country participant, and manages the main national indices representing these stocks: AEX index, BEL20, CAC 40 and PSI20. Blue chip traded on Euronext represent 20+ issuers included in the EURO STOXX 50® benchmark. [50]

Table of major instrument types traded on Euronext Cash Markets

Market / Segment Name Equities[51] Bonds[52] ETFs[53] Funds[54] ETVs / ETNs[55] Warrants, Certificates & Structured Notes[56]
Alternext Amsterdam Yes - - - - -
Alternext Brussels Yes Yes - - - -
Alternext Lisbon Yes - - - - -
Alternext Paris Yes Yes - - - -
Easynext Lisbon Yes - - - - Yes
Euronext Amsterdam Yes Yes Yes Yes Yes Yes
Euronext Brussels Yes Yes Yes Yes Yes Yes
Euronext Lisbon Yes Yes Yes Yes - -
Euronext London Yes - - - - -
Euronext Paris Yes Yes Yes - Yes Yes
Marche Libre Brussels Yes Yes - - - -
Marche Libre Paris Yes Yes - - - Yes
NYSE Arca Europe Yes - - - - -
NYSE Bondmatch - Yes - - - -
Traded But Not Listed Amsterdam Yes - - - - -
Trading Facility Brussels Yes - - - - -

Derivative market

Table of major instrument types traded on Euronext Derivative Markets[57]

Location Commodities Index Derivatives Stock Futures Stock Options ETF Options Currency Derivatives
Amsterdam, The Netherlands - Yes - Yes - Yes
Brussels, Belgium - - - Yes - -
Lisbon, Portugal - Yes Yes - - -
Paris, France Yes Yes - Yes Yes -

Indices

Euronext manages various country (national), as well as pan-European regional and sector and strategy indices.[58]

Main indices managed by Euronext[58]

Name Symbol Trading Currency
AEX ALL-SHARE AAX EUR
AEX-INDEX AEX EUR
ALTERNEXT ALLSHARE ALASI EUR
AMX-INDEX AMX EUR
ASCX-INDEX ASCX EUR
BEL 20 BEL20 EUR
BEL ALL-SHARE BELAS EUR
BEL CONTIN STCK NR BELCU EUR
BEL MID INDEX BELM EUR
BEL SMALL INDEX BELS EUR
CAC 40 PX1 EUR
CAC ALL SHARES PAX EUR
CAC ALL-TRADABLE CACT EUR
CAC MID & SMALL CACMS EUR
CAC MID 60 CACMD EUR
CAC NEXT 20 CN20 EUR
CAC SMALL CACS EUR
EURONEXT 100 N100 EUR
EURONEXT FAS IAS FIAS EUR
IBERIAN INDEX NEIBI EUR
IEIF SIIC FRANCE SIIC EUR
LC 100 EUROPE LC100 EUR
NEXT 150 (French) N150 EUR
NEXT BIOTECH BIOTK EUR
OSEO INNOVATION NAOII EUR
PRIVATE EQUITY NXT PENXT EUR
PSI 20 PSI20 EUR
PSI ALL-SHARE GR BVLGR EUR
REIT EUROPE EUR
SBF - FCI FCI EUR

Financial figures

In December 2012 Euronext cash products average daily volume was 1.1 million transactions, and market share in European Cash products was 68.7%, Euronext derivatives products average daily volume was 3.5 million contracts.[59]

Agreements and cooperation with other exchanges

Euronext has cross-membership and cross-access agreements with the Warsaw Stock Exchange for their cash and derivatives products, and with the Helsinki Exchanges on cash trading; ownership agreements are currently excluded.

See also

References

  1. ↑ 1.0 1.1 Kingdom of the Netherlands-Netherlands: Detailed Assessment of Standards and Codes (Report). Washington, D.C.: International Monetary Fund. 2004-09-29. p. 136. IFM Country Report No 04/310. http://books.google.fr/books?id=J5zSdO4k6pIC&lpg=PA136&ots=B9MEYKrKQK&dq=Euronext%20September%2022%2C%202000&pg=PP3#v=onepage&q=Euronext%20September%2022,%202000&f=false. Retrieved 2013-12-27.
  2. ↑ 2.0 2.1 Yutaka, Kurihara; Sadayoshi, Takaya; Nobuyoshi, Yamori (2006). Global Information Technology and Competitive Financial Alliances. Idea Group Inc. (IGI). p. 137. ISBN 9781591408833. 
  3. ↑ 3.0 3.1 3.2 3.3 Fabozzi, Frank J., ed. (2008). "Handbook of Finance, Financial Markets and Instruments". Handbook of Finance 1. John Wiley & Sons. p. 143. ISBN 9780470391075. Retrieved 2013-12-27. 
  4. ↑ 4.0 4.1 Théodore, Jean-François (2000-09-22). "Birth of Euronext: Speech from Jean-François Théodore, Chairman and Chief Executive Officer of Euronext". Paris Europlace. Retrieved 2013-12-27. 
  5. ↑ 5.0 5.1 5.2 5.3 "IntercontinentalExchange Completes Acquisition of NYSE Euronext" (Press release). ICE Intercontinental Exchange. 2013-11-13. Retrieved 2013-12-27. 
  6. ↑ Kutler, Jeffrey (2013-07-16). "The 2013 Tech 50: Dominique Cerutti". Institutional Investor. Retrieved 2013-12-26. 
  7. ↑ 7.0 7.1 Alcaraz, Marina (2013-12-06). "Anthony Attia prend la tête d’Euronext en France". Les Échos (in French) (Paris). Retrieved 2013-12-26. 
  8. ↑ "Biography Cees Vermaas". AmCham - American Chamber of Commerce in the Netherlands. 2011. Retrieved 2013-12-26. 
  9. ↑ [http://investing.businessweek.com/research/stocks/private/person.asp?personId=106826522&privcapId=5522530&previousCapId=5522530&previousTitle=Euronext%20N.V. "Executive Profile of Cees Vermaas"]. Bloomberg Businessweek. Retrieved 2013-12-26. 
  10. ↑ "NYSE Euronext launches EnterNext® in Brussels" (Press release). NYSE Euronext. 2013-07-04. Retrieved 2013-12-26. 
  11. ↑ "NYSE Euronext Appoints Luis Laginha De Sousa To Succeed Miguel Athayde Marques As Chairman And CEO Of NYSE Euronext Lisbon" (Press release). Mondo Visione. 2010-06-14. Retrieved 2013-12-27. 
  12. ↑ "Anthony Attia prend la tête d'Euronext France". Le Figaro (in French) (Paris). 2013-12-06. Retrieved 2013-12-27. 
  13. ↑ 13.0 13.1 Bunge, Jacob; Demos, Telis (2013-11-18). "Euronext Attracts Potential Buyers". The Wall Street Journal (Lex Fenwick). Retrieved 2012-12-29. 
  14. ↑ "Regulation". NYSE Euronext. Retrieved 2010-09-23. 
  15. ↑ 15.0 15.1 "ICE buys NYSE-Euronext. The end of the street". The Economist (New York: London, The Economist Newspaper Ltd.) 2013 (November 16). 2013-11-16. ISSN 0013-0613. Retrieved 2013-12-27. 
  16. ↑ 16.0 16.1 "London: The LIFFE". NYSE Euronext. Retrieved 2013-12-27. 
  17. ↑ 17.0 17.1 "Universal Trading Platform - A global and end-to-end trading solution". NYSE Euronext. 2010. Retrieved 2013-12-27. 
  18. ↑ 18.0 18.1 "NYSE Liffe Universal Trading Platform (UTP) Update" (Press release). NYSE Euronext. 2011-05-24. Retrieved 2013-12-27. 
  19. ↑ (in English) CMF Annual Report 2002: Regulation of financial activity (Report). Paris: Autorité des marchés financiers (AMF). 2002. p. 5. http://www.amf-france.org/technique/multimedia?docId=workspace://SpacesStore/968e51bd-3849-49fe-bc5e-646a6c157101_en_1.0_rendition. Retrieved 2013-12-27.
  20. ↑ "History - About TFX - Tokyo Financial Exchange Inc.". Tokyo Financial Exchange Inc. (TFX). Retrieved 2013-12-27. 
  21. ↑ Ferry, John (2003-01-10). "CBOT to use Liffe Connect". Risk magazine. Retrieved 2013-12-27. 
  22. ↑ "CBOT® How the e-cbot® Market Works" (PDF). Chicago Board of Trade. Retrieved 2013-12-27. 
  23. ↑ "Certification and Request for Approval of Electronic Trading Rules Pursuant to Commission Regulation Sections 40.6(a) and 40.5" (PDF). U.S. Commodity Futures Trading Commission. 2004-08-31. Retrieved 2013-12-27. 
  24. ↑ "Minneapolis Grain Exchange Announces Electronic Trading Hosting Arrangement With Chicago Board Of Trade" (Press release). Minneapolis: Minneapolis Grain Exchange (MGEX). 2004-08-17. Retrieved 2013-12-27. 
  25. ↑ "Alternext" (in French). NYSE Euronext. Retrieved 2013-12-27. 
  26. ↑ "2005 AMF Annual Report: Chapter 3 - Corporate Finance and the Quality of Financial Disclosure". Paris: Autorité des marchés financiers (AMF). 2006-03-09. p. 6. Retrieved 2013-12-27. 
  27. ↑ MacDonald, A.; Manuel, G. (2006-12-12). "Nasdaq Formally Launches Bid for London Stock Exchange". The Wall Street Journal. 
  28. ↑ "NYSE and Euronext 'set to merge'". BBC News. 2006-05-21. Retrieved 2006-05-22. 
  29. ↑ "Deutsche Boerse outbids NYSE for Euronext merger". BBC News. May 23, 2006. Retrieved 2006-05-23. 
  30. ↑ 30.0 30.1 Lucchetti, Aaron; Macdonald, Alistair; Scannell, Kara (June 2, 2006). "NYSE, Euronext Set Plan to Form A Markets Giant". The Wall Street Journal. Retrieved 2006-06-02. 
  31. ↑ Taylor, Edward; Lucchetti, Aaron; Macdonald, Alistair (2006-11-15). "Deutsche Börse Is Exiting Euronext Chase". The Wall Street Journal. Retrieved 2006-11-15. 
  32. ↑ Lucchetti, Aaron; Macdonald, Alistair (2006-12-19). "Euronext Shareholders Approve Acquisition by NYSE". The Wall Street Journal. Retrieved 2006-12-19. 
  33. ↑ "Big Board Holders Back Euronext Deal". The New York Times. 2006-12-21. Retrieved 2006-12-21. 
  34. ↑ Grant, Jeremy (2008-12-06). "Deutsche Börse pitches merger with NYSE Euronext". Financial Times. London. Retrieved 2008-12-09. 
  35. ↑ Bunge, Jacob; Launder, William; Lucchetti, Aaron (2011-02-10). "NYSE, Deutsche Börse Talk Tie-Up as Competition Intensifies". The Wall Street Journal (Chicago: Lex Fenwick). ISSN 0099-9660. Retrieved 2013-12-27. 
  36. ↑ Waller, Martin (2008-12-08). "Talks to create world's biggest exchange". Times Online (London). Retrieved 2008-12-09. 
  37. ↑ Bunge, Jacob (2011-07-15). "Deutsche Börse Wins 82% Backing for NYSE Deal". The Wall Street Journal (Chicago: Lex Fenwick). Retrieved 2013-12-27. 
  38. ↑ Bartz, Diane (2011-12-11). "Deutsche Boerse, NYSE deal wins U.S. approval". Reuters (Washington D.C.). Retrieved 2013-12-27. 
  39. ↑ "Mergers: Commission blocks proposed merger between Deutsche Börse and NYSE Euronext" (Press release). European Commission. 2012-02-01. Retrieved 2013-12-27. 
  40. ↑ "NYSE Euronext merger with Deutsche Boerse blocked by EU". BBC News. 2012-02-01. Retrieved 2013-12-27. 
  41. ↑ McCrank, John; Jeffs, Luke (2012-12-20). "ICE to buy NYSE Euronext for $8.2 billion". Reuters (London). Retrieved 2013-12-27. 
  42. ↑ Pisani, Bob (2013-06-03). "NYSE Euronext Shareholders Approve ICE Merger". CNBC. Retrieved 2013-12-27. 
  43. ↑ "NYSE Euronext Shareholders Approve Acquisition by IntercontinentalExchange" (Press release). New York: NYSE Euronext. 2013-06-03. Retrieved 2013-12-27. 
  44. ↑ "IntercontinentalExchange Stockholders Approve Acquisition of NYSE Euronext" (Press release). Atlanta: ICE Intercontinental Exchange. 2013-06-03. Retrieved 2013-12-27. 
  45. ↑ "Mergers: Commission approves acquisition of NYSE Euronext by InterContinental Exchange" (Press release). Brussels: European Commission. 2013-06-24. Retrieved 2013-12-27. 
  46. ↑ "Self-Regulatory Organizations; New York Stock Exchange LLC; NYSE MKT LLC; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Change Relating to a Corporate Transaction in which NYSE Euronext Will Become a Wholly-Owned Subsidiary of IntercontinentalExchange Group, Inc" (Press release). Securities and Exchange Commission (SEC). 2013-08-15. Retrieved 2013-12-27. 
  47. ↑ Bunge, Jacob (2013-08-16). "SEC Approves ICE-NYSE Deal". The Wall Street Journal (Chicago: Lex Fenwick). Retrieved 2013-12-27. 
  48. ↑ Lynch, Sarah N.; McCrank, John (2013-08-16). "SEC approves ICE's planned takeover of NYSE". In McCormick, Gerald E.; Wallace, John. Reuters. Retrieved 2013-12-27. 
  49. ↑ S.W.I.F.T. SCRL (2013-12-09). "ISO 10383 - Market Identifier Codes" (PDF). International Organization for Standardization. Retrieved 2014-01-06. 
  50. ↑ Euronext. "About Euronext". Retrieved 2014-01-10. 
  51. ↑ Euronext. "Euronext Equities Product Directory". Retrieved 2014-01-11. 
  52. ↑ Euronext. "Euronext Bonds Product Directory". Retrieved 2014-01-11. 
  53. ↑ Euronext. "Euronext ETF Product Directory". Retrieved 2014-01-11. 
  54. ↑ Euronext. "Euronext Funds Product Directory". Retrieved 2014-01-11. 
  55. ↑ Euronext. "Euronext ETV/ENT Product Directory". Retrieved 2014-01-11. 
  56. ↑ Euronext. "Euronext Warrants & Certificates Product directory". Retrieved 2014-01-11. 
  57. ↑ NYSE Euronext. "NYSE Euronext Global Derivatives Product Directory". Retrieved 2014-01-11. 
  58. ↑ 58.0 58.1 NYSE Euronext. "Euronext Index Directory". Retrieved 2014-01-11. 
  59. ↑ "NYSE Euronext Announces Trading Volumes for December 2012 and Other Metrics" (Press release). NYSE Euronext. 2013-01-10. Retrieved 2013-12-29. 

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